Question

Hanson Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:


Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

What are the equivalent units for materials for the month in the first processing department?

Beginning work in process inventory: Units in beginning work in process inventory.. Materials costs ............. Conversion costs... Percent complete with respect to materials...... Percent complete with respect to conversion. ........ Units started into production during the month..... Units transferred to the next department during the month Materials costs added during the month.... Conversion costs added during the month .... Ending work in process inventory: Units in ending work in process inventory. Percent complete with respect to materials... Percent complete with respect to conversion. 200 $2,200 $1,000 50% 10% 6,500 6,100 $135,000 $312,600 600 80% 60%

Select one:

a. 480

b. 6,700

c. 6,580

d. 6,100

What are the equivalent units for conversion costs for the month in the first processing department?

Select one:

a. 360

b. 6,700

c. 6,100

d. 6,460

Answer 1

1) 2) Answer: c. 6,580 Answer: d. 6,460 Workings: Equivalent units of production: Weighted Average Method Flow of production Physical Units Direct Materials Conversi on Beginning work in process inventory Started during period To account for 200 6,500 6.700 6.100 Units completed Ending work in process inventory Unit Accounted for (Equivalent unit) 600 6.100 480 6,580 6.100 360 6.460 6,700 Materials Conversion 480 Ending work in process: (600 units * 80% complete) 600 units * 60% complete) Equivalent units of production 360 360 480